Written by: Roshan Dwivedi
There has recently been a shift in tone by major cable companies when they talk about their relationship with Netflix. Cable executives seem to have woken up to the fact that their licensing deals with Netflix bolster the catalog of a company that could do serious damage to their business.
The analysts write that the Hollywood “talent” involved in hit shows – like actors or writers – expect their studio partners to maximize the earnings on each show. They don’t care about Netflix hurting other parts of the studio’s business. That’s not their problem. They want as much money as possible, and Netflix is throwing it around.
Morgan Stanley claims that Netflix has been “broadly positive” for the ecosystem as a whole, especially compared to YouTube and Facebook, two emerging video streaming platforms whose ability to deliver value to studios is much less certain. This means it’s hard for a cable company to sell a move to cut off Netflix as beneficial to anyone but itself.
Netflix is the standard.
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